1M budget what would you pick to invest - condo in SF vs SFH in Berkeley/Oak?

As the title says it all, curious to hear from fellow investors,
Lets say you had a budget of $1M to invest in property. It has to be residential property as this is coming from a 1031 exchange.
What would you pick taking into consideration a good balance of rental income and long-term appreciation

  1. 2BR Condo in SF
  2. 2BR SFH in Berkeley/Oakland
    I would add a 3rd option.
  3. 2BR house in SF but in a more up and coming neighborhood like near balboa park eg outer mission/ingleside

Go sfh
Condos have no limits on their HOA fees and rarely appreciate at the same rate as sfhs

My pick would be #3, if such an animal exists for you to buy/win outright. Good luck!

I would go for option 4: SFH in the South Bay.

If you can find me (all of us) a SFH that is $1M tops, we all would be interested very much…

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Plenty of SFHs in South SJ under $1M, but nobody seems to want to commute that far out.

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For $1m I will sell you my 8 unit building in South Lake Tahoe with gross rent of $110k/ year. That is 2.5 times return compared to what you get in the BA… Plus no rent control zero vacancies and 10% a year appreciation

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Well, if the OP wanted to consider as far as SSJ, I believe he/she would have mentioned it. Only the best and brightest get to live and own in the Fab 7x7. Where have you been?:grin:

:slight_smile: - ssj seems too far, and I get the vibe that most of the VC capital is in SF and that is where we will see growth in fields like machine learning/data science etc.
BUt thanks everyone for the pointers.
@sfdragonboy I see many houses in ingleside west of BB bart station sold < 1M last 3 months
eg https://www.redfin.com/CA/San-Francisco/164-Howth-St-94112/home/1567367


are you serious? 10% rental yield and 10% appreciation!

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Yep, the holy grail
And I found it in paradise

I would choose #5…go and enjoy life while you can.

The Russians are coming! Well, except one, he is on vacation. :rofl:

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The law or larger numbers say that you put your money into something that is going to give you more returns with little investment. ESJ has many opportunities.

Well, I had to look up what you saw that sold for 1M and less and frankly 2/3 are small homes needing a lot of work. I can argue buying in the Sunset instead. There is only one that seemed decent 3/2 but again no pics of the inside. Ingleside is still transitioning in my opinion so not that desirable. Maybe in the Excelsior you might find a fixer worth buying to fix up nice for yourself to live in.

I’m at a place where I get to downtown SF via public transit in 30 minutes, which is much faster than the average Central or Outer Sunset homeowner :smile:

This property is awfully close to the house where a homicide occurred five years ago:


Yes, but most people don’t want to actually live there. They live there because they have to. Truth hurts…

Just went through this on 1.1M tax deferred exchange.
Went to Fresno snatched up 4 SFHs.
A 1 M dollars hardly gets one anything that looks half way decent anymore in SFBA.

You got be tactful as one wrong move can make one illegible.

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Not really, it’s about the same to me living wise. If any, my current location has a better environment and commute overall compared to Central or Outer Sunset. I do prefer Richmond and Inner Sunset though if I had the money :slight_smile:

Come on, you are talking Daly City if I remember right? Please, weather is even worse than Sunset if that is possible. We pretty much live in a near perfect information world as it is. If your area were so good, homes would be way more expensive than they are now (since in theory, it would be underpriced). The fact is, the reason why neighborhoods like the Sunset are so hot and selling so well is simply people do find the value of owning there and are willing to overbid. It is not rocket science.

Not the case in Westlake, but that’s okay, nobody needs to know that. In the words of @dioworld, please get out of DC, it’s ghetto :slight_smile: